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Berlin, 2004-09-06

Berlin, 2004-09-06. The transformation of the media sector – an interdisciplinary discourse of its economic and social implications ITS 15 Biennial Converence. Benedikt von Walter, Institute of Information Systems and New Media

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Berlin, 2004-09-06

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  1. Berlin, 2004-09-06 The transformation of the media sector– an interdisciplinary discourse of its economic and social implications ITS 15 Biennial Converence Benedikt von Walter, Institute of Information Systems and New Media Oliver Quiring, Institute of Communication Sciences and Media Research University of Munich, Germany

  2. Agenda • Motivation, objective and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 1

  3. MotivationWhy does this presentation make sence?

  4. Objective and Background Objective Interdisciplinary contribution to the analysis of the impact of transformation processes in the media sector which are due to digitalization and accompanied by economic changes. Background Interdisciplinary project intermedia (intermedia.lmu.de) funded by German Ministry for Education and Science (BMBF) and dedicated to the impact of a second generation Internet on Information Intermediaries in the media sector. Participating disciplines are Business Administration, Communication Sciences and Computer Sciences

  5. Agenda • Motivation, objective and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 4

  6. Organization of the Analysis • Media transformation: • Earlier: The German case • Recently: Digitalization and Economization Business Sciences View Communication Sciences View Parallels and Differences Conceptual Consequences Methodological Consequences

  7. Agenda • Motivation, objective and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 6

  8. The issue: Media TransformationThe media recently undergoes fundamental transformation processes whichare mainly induced by digital technologies but also cause economic changes • More powerful Computers (speed, storage, interconnectivity) • Growing Connection of computers via Internet (Quantity, speed, fromats) • New digital production and distribution technologies (Semantic Web, Multimedia, XML, Content Management Systems, On-Demand) • New digital products (E-Paper, MMS, digital radio) “New” Tech. drivers “Traditional” drivers “New” economic drivers • Expansion of media institutions and content supply • Growing pressure on Editorial Staff • Tendency towards more entertainment and less information • Lower transaction costs for both, producer and recipient due to digitalization • Increased market position of both producers and consumers • Free content available online (e.g. peer-to-peer file sharing systems) • Convergence (Telco, IT enter the scene) • Content Re-Utilization • Online Content Syndication Media Sector Diminishing returns, little profitability, enhanced competition, dependency on subsidies, …

  9. Agenda • Motivation, objective and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 8

  10. Two views on the Media Sector: Business Sciences view Production Distribution Bundling Reception Margin Media value chain Producers (Economic) Actors InformationIntermediaries DistributionIntermediaries Recipients

  11. Two views on the Media Sector: Communication Sciences view Who Says what In which channel To whom With what effect Lasswell Formula Communicator Message Media Recipient Effect Elements of the communication process

  12. Two views on the Media Sector: Bringing the two views togetherBusiness Sciences View and Communication Sciences view on media Business Science View Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect Communication Sciences View

  13. Two views on the Media Sector: Parallels and differencesBusiness Sciences View and Communication Sciences View on Media Concept level Parallel 1 Difference 1 • The media value chain and the Lasswell Formula are similar as they both represent process-related views on the media sector. • The concept of each discipline is connected to a lot more in-depth research fields. • The media value chain is a special construct for economic issues. • The Lasswell formula represents more general view taking also social, psychological, political and technological factors into consideration. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  14. Two views on the Media Sector: Parallels and differencesBusiness Sciences View and Communication Sciences View on Media Objectives level Parallel 2 Difference 2 • Both concepts are intended to depict each discipline´s objectives. • Communication sciences employ economic objectives as a means to achieve journalistic objectives while business research tends to employ journalistic objectives as a means of economic objectives. • Major objectives are “economic efficiency” for business science and “social fit” in the case of communication sciences. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  15. Two views on the Media Sector: Parallels and differencesBusiness Sciences View and Communication Sciences View on Media Functions level Parallel 3 Difference 3 • Both concepts encompass a functional view on media. • A comparison on a descriptive level shows that economic functions are not contradictory to but prerequisites for social functions in an increasingly market-oriented media sector. • The normative views on markets in one case (“how to optimise companies in markets”) and on the society as a whole in the other case (“how to optimise media in societies”) are controversial in some cases. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  16. Two views on the Media Sector: Parallels and differencesBusiness Sciences View and Communication Sciences View on Media Issues level Parallel 4 Difference 4 • Both disciplines agree on the importance of major issues for current and future media. • The disciplines sometimes disagree on opportunities and threads resulting from these drivers. This is mainly due to different objectives in each view. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  17. Two views on the Media Sector: Parallels and differencesBusiness Sciences View and Communication Sciences View on Media Time horizon level Parallel 5 Difference 5 • With respect to the time horizon both disciplines are interested in current phenomena. • Communication sciences have a comparatively long-term view on the past and the present, while business science takes a more short-term perspective on the present and the future in order to efficiently deliver pragmatic solutions. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  18. Two views on the Media Sector: Parallels and differencesConclusion: Why to identify parallels and differences? Conclusion Similarities of both disciplines are important in order to identify linking pins for an interdisciplinary treatment of the topic while some of the differences might contribute to an enhanced view on the media sector in each discipline. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  19. Agenda • Motivation, objectives and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 18

  20. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Conceptual consequence 1: Focus producers and recipients With respect to the fact that media companies face an increasing threat of disintermedia-tisation that is partly induced by an enhanced bargaining power of both, artists and recipients in the Internet business science could benefit from communication science knowledge about these actors. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  21. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Conceptual consequence 2: Focus on efficiency Recently, economisation, independently of its causes (deregulation or digital technologies), urges media institutions to pay more attention to economic principles in order to be able to fulfill these functions in the future. Communication sciences could benefit from business science´s specialized tool-kit for an efficient production, selection, bundling and distribution of content. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  22. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Conceptual consequence 3: Focus on functions (1) If media does not serve the functions demanded by its recipients they may not be willing to pay for content, a threat that media companies have to take more seriously in times of free content “at your fingertips”. Lessons to learn for business science. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  23. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Conceptual consequence 4: Focus on functions (2) Communication sciences could make more use of the knowledge of Business science with respect to economic functions as a “promoter” of social functions. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  24. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Conceptual consequence 5: Relativate optimal time horizon While communication sciences might enrich business research by delivering a classification for general long-term success factors of media, on the other hand it might need more pragmatic and efficient concepts of business science in order to grasp new trends and to develop according business strategies in a world of quickly evolving technologies. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  25. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Methodological consequence 1: No immense methodological differences Surprisingly, despite substantial differences in conceptual issues, no such immense differences can be identified with respect to methodology. Both disciplines employ deductive as well as inductive model and theory building, empirical tests of these models and theories and a continuative amplification of theories based on empirical results. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  26. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Methodological consequence 2: Joint research designs Consequently, we do not need new research methods, but an inclusion of both specific views in joint research designs. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  27. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Examples of a joint research design Example 1: The processes of production, bundling and distribution as well as the people associated with these processes are to be understood.  management & organization theories, concepts for cost calculation and marketing strategies ...  in-depth interviews with producers of content, group discussions or observation studies Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  28. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Examples of a joint research design Example 2: The marketability of media products as well as their journalistic quality is important.  Production theories, technology roadmaps help to optimize technical quality, while content analyses helps to monitor the journalistic quality of existing media content.  In-depths interviews, focus group discussions, standardised surveys  “know your customer” Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  29. Conceptual and methodological consequencesWhat can both disciplines learn from each other? Examples of a joint research design Example 3: The paying consumer is equally interesting as his social circumstances.  Usage of modern technologies (user tracking) to generate data about users and adequate marketing strategies.  Long-term “Media diaries”, tests of prototypes in experimental settings. Production Distribution Bundling Reception Margin Media Sector Who Says what In which channel To whom With what effect

  30. Agenda • Motivation, objective and background • Organization of the analysis • The issue: media transformation • Two views on the issue: parallels and differences • Conceptual and methodological consequences • Limitations and further research 29

  31. Limitations and further research Limitations • Apart from communication sciences and business sciences, computer sciences have not been integrated. • The analysis is on a descriptive stage so far (discourse!) and is to be seen as „work in progress“ still lacking empirical investigations. Further research • Methodological level: Investigations on empirical evidence of identified parallels and differences as well as conceptual and methodological consequences. •  In-depth interviews with researchers in both disciplines. • 2. Problem-related level: Integrated (empirical and theoretical) investigations on mentioned topics.

  32. i n t e r m e d i a Prof. Dr. Thomas Hess (Sprecher) Department für Betriebswirtschaft Institut für Wirtschaftsinformatik und Neue Medien Ludwig-Maximilians-Universität München Ludwigstraße 28 D - 80539 München Tel.: +49 (0)89 / 2180 – 6391 Fax: +49 (0)89 / 2180 – 13541 Email: thess@bwl.uni-muenchen.de WWW: www.wim.bwl.uni-muenchen.de Prof. Dr. Heinrich Hussmann Department für Informatik LFE Medieninformatik Ludwig-Maximilians-Universität München Oettingenstr. 67 D - 80538 München Tel.: +49 (0)89 / 2180 – 4650 Fax: +49 (0)89 / 2180 – 4652 Email: Heinrich.Hussmann@informatik.uni- muenchen.de WWW: www.medien.informatik.uni- muenchen.de Prof. Dr. Hans-Bernd Brosius Institut für Kommunikationswissenschaft Lehrstuhl für Kommunikationswissenschaft und Medienforschung Ludwig-Maximilians-Universität München Oettingenstr. 67 D - 80538 München Tel.: +49 (0)89 / 2180 – 9455 Fax: +49 (0)89 / 2180 – 9443 Email: brosius@ifkw.lmu.de WWW: www.ifkw.uni-muenchen.de Prof. Dr. Dres. h.c. Arnold Picot Department für Betriebswirtschaft Institut für Information, Organisation und Management Ludwig-Maximilians-Universität München Ludwigstraße 28 VG II D - 80539 München Tel. +49 (0)89 / 2180 – 2252 Fax. +49 (0)89 / 2180 – 3685 Email: picot@bwl.uni-muenchen.de WWW: www.iom.bwl.uni-muenchen.de Prof. Dr. Claudia Linnhoff-Popien Department für Informatik Lehrstuhl für Verteilte Systeme/Ubiquitous Computing Ludwig-Maximilians-Universität München Oettingenstr. 67 D - 80538 München Tel.: +49 (0)89 / 2180 – 9149 Fax: +49 (0)89 / 2180 – 9147 Email: linnhoff@informatik.uni-muenchen.de WWW: www.nm.informatik.uni-muenchen.de Prof. Dr. Werner Wirth Institut für Publizistikwissenschaft und Medienforschung der Universität Zürich Andreasstr. 15 CH - 8050 Zürich Tel.: +41 (0)1 / 634 – 4661 Fax: +41 (0)1 / 634 – 4934 Email: w.wirth@ipmz.unizh.ch WWW: www.ifkw.uni-muenchen.de www.ipmz.unizh.ch www.intermedia.lmu.de Ein Projekt im Rahmen der Gefördert vom

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